Grayscale Investments has crossed the $30 billion mark in crypto assets under management (AUM). The company says the huge growth is coming from institutional investors, including hedge funds.
- Grayscale said Friday that its total crypto assets under management are currently $30.4 billion. The front-runner is the Grayscale Bitcoin Trust, which currently holds over A$24 billion, followed by the Ethereum Trust with over A$5 billion.
- Grayscale started last year with just $2 billion in assets under management and ended the year with more than $20 billion, up 900%.
- The huge growth of the grey area is attributed to investments by institutional investors, especially hedge funds, explains managing director Michael Sonnenschein : There is no longer an occupational risk in investing in the digital currency asset class – it is more of a career risk if you are not careful.
- In its fourth quarter 2020 report, the company wrote that the institutions are there, adding that in the fourth quarter, the institutions accounted for 93% of all capital inflows in the period, or about $3 billion. The average liability of agencies is also increasing significantly, according to Grey Scale, The average liability of agencies was $6.8 million.
- Grayscale now offers nine different cryptocurrency investment products following the discontinuation of the XRP Trust. Other products include Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust, Ethereum Classic Trust, Horizen Trust, Litecoin Trust, Stellar Lumens Trust, Zcash Trust and Big Sausage Digital Fund.
- Of all the crypto products offered, only three are not publicly traded on the OTC markets: Horizen Trust, Stellar Lumens Trust and Zcash Trust. Shares in other trusts and large cap funds are now free and can be traded on any securities account.
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